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LiuGong's Zeng Guang’an Spoke on Development of Manufacturing Industry at National People’s Congress
BY OEM Off-highway
The first session of the 13th National People's Congress (NPC) opened in the Great Hall of the People in Beijing, Capital of China on March 5. Chinese Premier Li Keqiang delivered the annual report on the work of the government at the opening ceremony. Zeng Guang’an, NPC deputy for Guangxi Zhuang Autonomous Region and Chairman of Guangxi Liugong Group Co., Ltd., attended the conference.
Manufacturing is the foundation of a nation and always attracted great attention from the public. Zeng Guang’an also shared with his perspectives on industry development; transition from old to new economic engines; the globalization of Chinese enterprises and the development & competitiveness of Guangxi manufacturing industry.
“Even in our toughest time, we insisted on investing in R&D,” Zeng Guang’an stated. LiuGong maintained steady growth in the past few years of recession and the transion of the Chinese economy and Zeng Guang’an attributed it to LiuGong’s innovation-driven developing model. Through organizational reform and technology innovation, LiuGong not only increased operating efficiency, but also made several remarkable breakthroughs in both products and technology, among which, the vertical lift wheel loader, VL80A, is listed in the National Innovation List as a major achievement. Moreover, this technology is applicable to all loaders to increase loading efficiency. At the same time, LiuGong enhanced its global presence and adjusted its current layout to be more in conjunction with the national “B&R” initiative. As of the end of 2017, equipment production and sales of LiuGong India exceeded 1,000 units within the year for the first time in 10 years’ operation and LiuGong Poland launched new production lines in Stalowa Wola, Poland, augmenting Dressta’s dozer and pipe-layer operations with the manufacture of LiuGong Tier IV Final wheel loaders and excavators to supply “Made in Poland” products and local service throughout Europe. Last but not least, the support from both Central Government and local government played an important role during the economic downturn; all these have accumulated enough strength for LiuGong to revive with an even stronger momentum.
Regarding the development of Guangxi, Zeng Guang’an thinks human talent has been the bottleneck for Guangxi manufacturing and other new industrial companies. Taking LiuGong’s development as an example, he proposed that business organizations should introduce more international talent including technicians, entrepreneurs and experts. These are urgently needed in key areas with the support and guidance from Chinese government. Zeng also stressed that manufacturing, marketing and branding are also key elements for the shifting process. “Besides the R&D innovations, Guangxi enterprises also need the innovation and internationalized insight at a corporation’s management and operation levels to com plete the transion” he said.
In 2017, the average increase of construction machinery in domestic was around 40%. The achievement has been largely due to the government’s efforts of ensuring the steady growth and structural reforms; in addition, the machines’ upgrading needs due to environmental protection requirements and the fade-out of second-hand machines all contributed to the increase. “We have seen great privileges in the Government Work Report for our industry in 2018, such as tax reduction for real economic corporations, business environment’s improvement and financial resources’ optimization, the Rural Revitalization Strategy, new investment in infrastructure construction, the implementation of 'China Manufacturing 2025' and intelligent manufacturing as well as the launch of new projects along 'OBOR' regions, etc. All will lead to a better future for the CE industry,” Zeng concluded with great confidence.
2018 is the 40th Anniversary of the Chinese Reform and Opening-up and 60th Anniversary of the establishment of Guangxi Zhuang Autonomous Region. Meanwhile, it is the 60th Anniversary of LiuGong. “From Guangxi to China, LiuGong took 40 years; and from China to world, LiuGong took 15 years,” Zeng addressed, “In 2018, we are to challenge the 20 billion yuan in the group’s sales and maintain our global growth. Hopefully, till 2020, our overseas revenue can account 40% of company’s total revenue.”
The 13th NPC will end on March 20. “It is a great honor to be elected deputy to the 13th NPC for Guangxi and propose on behalf of manufacturing industry.” Zeng Guang’an said. To carry out his rights and duties, he has determined to build LiuGong into a world-class construction machinery manufacturer, providing best products and services to the customers all over the world.
The Ambition of Liugong Group: to Become a Frontrunner of Global Manufacturing Industries
BY China News
“In order to develop manufacturing industries in Guangxi province faster and stronger, greater efforts must be made to increase brand awareness globally,” said Zeng Guang’an, chairman of the board and secretary of the Party committee of Guangxi Liugong Group Co,,Ltd.
He pointed out that although many cities in Guangxi province can produce high-quality products, quite a number of these products have remained unknown to the public nationwide, let alone worldwide. He believed that manufacturing industries in Guangxi need to improve strategies of marketing and brand building. Therefore, the real economy of Guangxi have to make a new break-through not only in technical innovation but also in methodologies and modes of operation management.
Over the past few years Liugong Group has made brilliant achievement in going global. Nowadays the Group has twenty overseas production bases, three overseas manufacturing bases and four R&D institutes worldwide. Its marketing network covers over 140 countries and regions in six continents. It has developed overseas business with 58 countries along the Belt and Road.
“It took 40 years for Liugong Group to establish reputation in China and 15 years to be known worldwide”, Zeng Guang’an said. The Group has mapped out three major steps to promote its brand awareness globally: international manufacturing, international manufacturing and overseas merger and acquisition. While implementing the strategies, capabilities of the team of Liugong Group have been improved in an all-round way, and that will be conducive to expansion of its overseas business.
According to Zeng, Liugong has become a global frontrunner in earthmoving machinery and pavement construction machinery. Next it will focus on R &D of electric and intelligent products. Liugong Group will continue to implement the “Going Global” strategy and make greater efforts in promoting construction of “One Belt, One Road”. It will be dedicated to improve global competitiveness of its brand and promote industrial transion and upgrading.
Zeng said that the core of transion and upgrading of industrial sectors is intelligentization. In order to achieve intelligentizaion in every sector Liugong Group will utilize the technology in installation of equipment, production and marketing.